Retirement Planning Basics: Marketing

Retirement Planning Basics

In this article I will explain some of the basic principles that underlie intelligent retirement planning. There is no rocket science here, I just want to be sure that everyone starts off on the same page.

Compound interest

One of the most important, yet misunderstood financial planning concepts is that of the power of compound interest. Compounding of interest merely means that you receive interest on top of interest. For example, if you are 20 years old and invest $5,000 per year for 45 years, you will have invested $225,000. However, if you earn an average of 6% per year compounded annually, you will end up with…

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